Violation of HIPAA standards is considered to be a:

A violation of HIPAA (Health Insurance Portability and Accountability Act) standards is considered a federal criminal offense because HIPAA is a federal law that sets national standards for the protection of health information. When violations occur, particularly those that involve willful neglect or an intentional disregard for the privacy and security of patient information, they can lead to criminal prosecution at the federal level. Penalties can vary based on the severity of the violation, as there are different tiers of fines and potential imprisonment for more serious breaches.

In the context of healthcare laws, it's crucial to understand that while local and state laws can impose their own regulations concerning health information, HIPAA is explicitly designed as a federal law governing the handling of medical records and patient information across all states. Therefore, its violations fall under federal jurisdiction, which is why this option is deemed correct.